Iran Conflict Hits Small Businesses Hard

Oxfordshire-based accountancy firm Azets has warned that the ongoing conflict in Iran is having a significant impact on small businesses in the UK.

The war, which began in February and continues sporadically, is causing economic pressures that could lead to insolvency for some SMEs as lenders raise their prices and investment slows.

Mark Barrie, head of debt advisory at Azets, said: 'It is a tough time for SME businesses what with this and the knock-on effects of all the other pressures they are currently facing adding up to a big squeeze on margins.'

A recent British Chambers of Commerce survey found that 80% of firms report existing or expected impacts from the Iran conflict, including higher energy prices, shipping delays, and rising raw material costs.

The Bank of England's base rate has been held at 3.75% since January, but most economists suggest there may be one or two hikes in interest rates instead of a predicted decrease to three percent by late 2026 or early 2027.